Racing and Gaming’s Political Contributions in New York:

The Second Half of 2009

Assessing the political contributions in New York from racing and gaming interest is always an inexact science. It is hampered by an assortment of factors which make any assessment an incomplete one.

These factors include:

a)The lack of ability of the researcher to understand and retrieve the available data;

b)The ability of contributors to disguise the source of the contribution through use of limited liability companies, corporations, family members, or employees.

c)The possibility that contributions made by lobbyists were actually made on behalf of their clients.

d) Mistakes in the database.

With that caveat, here is the data compiled on the contributions by racing and gaming interests to public officials and declared candidates in New York State for the last six months of 2009. I have generally not included contributions given by lobbyists in this listing. In most cases, lobbyists have many clients, and, without knowing the motivation of the donation, it would seem inappropriate to assign a contribution made by a lobbyist as one made on behalf of that lobbyist’s client in the racing/gaming industry. I have only listed contributions in excess of $250. The paper first lists contributions by the major donors followed by contributions based on the recipients, and concludes with the individual contributors to PAC funds in racing.

It also needs to be stated that in New York, there are numerous reasons – besides like of a particular public official and that official’s ideology– for making a political contribution. The contributor might: (a) be seeking better access to the official, (b) be seeking to influence the decision making of the public official, (c) feel compelled to be part of a pay for play process where if the contributor fails to pay up, he or she will be excluded from the process, (d) feel the need to hedge his or her political bets in order not to make enemies unnecessarily by not paying up; hedging be (e) be making the contribution of behalf of friends or business associates, and/or (f) be thanking the public official for past support This analysis makes no attempt to ascertain the motive or the intent behind the political contribution.

Thus, there are business entities like Delaware North or individuals like Jeff Gural and Len Riggio who have interests beyond those of their gaming interests. While I have listed their contributions, there is little way of knowing the actual reasons behind their donations.

There are a few particular issues of note in this paper’s analysis. One is that the major racing/gaming contributor in the second half of 2009 was the New York Racing Association through its political action committee, the New York Thoroughbred Racing Industry PAC.[1] In prior years, NYRA either did not play the political game to any great extent or simply used its PAC to leverage the contributions of its board members. In the past six months, it has expanded to include non- Board members as part of its group of contributors.

One other major issue is that of VLT’s at Aqueduct. The current bidders are SL Green/Hard Rock, Penn National, Peebles Construction/MGM, Aqueduct Entertainment, and Delaware North/Saratoga Harness. Some of the bidders for this potentially valuable contract have either not been deterred from making political contributions or have been motivated to increase their contributions. Thus, there are extensive contributions to the groups responsible for this decision from the Delaware North/Saratoga Harness bid. There are significant contributions from Jeff Gural who is part of the SL Green/Hard Rock bid, but it is fair to say that Mr. Gural has generally been the major political contributor from the racing/gaming industries over the past half decade. There are no political contributions that I could locate from the SL Green or the Hard Rock people. There are some contributions from the Aqueduct Entertainment people, one from MGM/Peebles,[2] but no contributions that I could locate from Penn National, or, or from Steve Wynn.[3]

I would also add there are a number of groups that in the past were active politically that made few contributions in the past six months. There are relatively few contributions from the State’s breeders, the NYRA horsemen, or from the groups involved with Monticello Raceway. Finally, the moneys flow to people and groups in power. There’s not much love for the Assembly Republicans and only a little bit more love for the Senate Republicans.

  1. The Major Contributors
  1. NYRA

Governor Paterson $20,000

Senate Democrats $20,000

Assembly Democrats $25,000

Senator Adams $2,000

Senator Addabbo $1,000

  1. Yonkers Raceway/ its PAC/Rooney Family

Assembly Democrats $10,000

Senator Klein $10,000 includes a $2,500 contribution from Tim Rooney

Senate Republicans $6,000

Senator Sampson $2,000

Governor Paterson $2,000

Attorney General Cuomo $2,000

Senator Adams $1,000

Assemblyman Brodsky $2,000

Much of the funding from the Yonkers PAC came from $18,000 contributed by Bob Galterio, the long time general manager of the track.

  1. Jeff Gural/ Tioga Downs

Attorney General Cuomo $10,000 - $5,000 each from Jeff and spouse

Senate Democrats $7,500

Governor Paterson $2,500

Senator Libous $5,000 includes $2,500 from Tioga Downs

Senator Klein $2,500

Senator Adams $2,500 through the Southern Tier Acquisition LLC

State Democratic Committee $1,000

Assemblywoman Lupardo $500 from Tioga Downs

  1. Saratoga Harness/Gerrity Family

Senator Adams $1,500

Governor Paterson $2,500 from Dan Gerrity

Senator Adams $1,500

Senator Schneiderman $2,500

Senate Candidate Peralta $2,000 - would be the likely successor to Senator Monserrate[4]

Senate Democrats $12,500

  1. Western NY Horsemen

Governor Paterson $ 2,500

Senator Sampson $500

Senator Adams $500

Senator Stachowski $1,000

Senator Alessi $500

Assemblyman Reilich $250

Assemblyman Errigo $250

Assemblyman Kolb $500

Senator Volcker $250

Senator Nozzolio $1,000

Assemblyman Silver $750

  1. Delaware North/Finger Lakes/Jacobs Family

Governor Paterson $1,000 from Jeremy Jacobs

Governor Paterson $1,000 from Louis Jacobs

Attorney General Cuomo $1,000

Senator Adams $2,000 $500 from DNC Travel

Senate Democrats $18,000 $17,000 from DNC Gaming

Comptroller DiNapoli $500

Assembly Democrats $1,000 $500 from Finger Lakes Foodservice

Senator Stachowski $550 $ 250 from DNC Travel $300 from Finger Lakes

Senator Nozzolio $4,500 from Finger Lakes Foodservice

Senator Addabbo $1,000 from Finger Lakes Foodservice

  1. OTB Employees

Governor Paterson $1,000

Senate Republicans $300

Senator Addabbo $500

Assemblyman Jeffries $250

  1. Aqueduct Entertainment Group

Senator Sampson $2,500 Levine Builders

Senator Adams $3,000 from Larry Woolf – Navegante Group

  1. Recipients of Donations
  1. Governor Paterson
  1. NYRA PAC 20,000
  2. Chester Broman $10,000[5]
  3. Len Riggio $5,900[6]
  4. Seneca Nation $2,000
  5. Thoroughbred Horsemen Western NY $2,500
  6. Dan Gerrity $2,500
  7. Jeff Gural $2,500
  8. Marty Scheinman $1,000 – labor mediator horse owner
  9. Adam Victor $1,000 – prominent harness horse owner
  10. NYTHA $1,000
  11. OTB Employees $1,000
  12. Jeremy Jacobs $1,000
  13. Lou Jacobs $1,000
  14. Yonkers $2,000
  15. David Flaum $1,000 has been involved in seeking gaming opportunities in Catskills
  1. Attorney General Cuomo
  1. David Einhorn $25,000 – Greenlight Capital – not racing per se but major minority stockholders in MI Developments – often enemies of Frank Stronach
  2. David Flaum $22,500
  3. Sandy Frucher $15,000 NYCOTB president
  4. Stuart Subotnick $5,000 NYRA vice chair
  5. Jeff Gural and spouse $10,000
  6. Donald Trump $5,000
  7. Delaware North $1,000
  8. John Nigro $500 NYRA board
  1. Comptroller DiNapoli
  1. James Gill $1,000 had been counsel to breeders fund
  2. Delaware North $500
  1. Eric DiNallo
  1. Ernie Dahlman $2,000 son of major bettor who heads Lien Gaming
  2. Larry Pedowitz $1,000 did gambling study for NBA
  3. Len Riggio and spouse $50,000
  4. David Einhorn 18.1 Greenlight Capital[7]
  1. Rick Lazio
  1. Frank Fahrenkopf $1,000 heads American Gaming Association
  2. Luke Jacobs $1,000 nephew of Del North family owners
  1. State Democratic Party
  1. St Regis Tribe $25,000
  2. Jeff Gural $1,000
  1. State Republican Party
  1. Larry Kadish $50,000 had been major harness owner
  2. John Nigro $500
  1. Assembly Democrats
  1. NYRA PAC $25,000
  2. Thoroughbred Breeders $7,500
  3. Michael Del Giudice $1,000 NYRA co-chair
  4. NYTHA $1,000
  5. SOA-NY $750
  6. Delaware North and related $1,000
  7. Harness Horse Association of Central NY $500
  8. Monticello Horsemen $250
  9. Western NY Harness Horsemen $500
  10. Saratoga Harness Horsepeople $500
  11. Saratoga Harness $1,500
  12. Monticello Raceway $1,000
  13. Clifford Broman @ Sons $250 major thoroughbred breeder[8]
  14. Yonkers Raceway $10,000
  1. Assemblyman Silver
  1. Western NY Horsemen $1,750
  1. Assemblyman Kolb
  1. Western NY Horsemen $500
  1. Assemblyman Reilich
  1. Western NY Horsemen $250
  1. Assemblyman Errigo
  1. Western NY Horsemen $250
  1. Assemblywoman Lupardo
  1. Tioga Downs $500
  1. Assemblyman Brodsky
  1. Bill Crowell $250 principal NYRA lobbyist
  2. Yonkers Raceway $2,000
  1. Assemblyman Towns
  1. Michael Del Giudice $400
  2. Peebles Corp. $1,000 casino bidder
  1. Assemblyman Jeffries
  1. OTB Employees $400
  1. Senate Democrats
  1. Delaware North and various subsidiaries $18,000
  2. NYRA PAC $20,000
  3. Jeff Gural $7,500
  4. D. Saratoga Harness $12,500
  5. Harrah’s Operating Company $2,000 – Harrah’s has an agreement with Delaware North re VLT’s at Aqueduct.
  1. Senate Republicans
  1. Earle Mack and spouse $10,000 prominent horseman
  2. Yonkers Raceway $6,000
  3. Akwesasne Tribe $1,000
  4. Mary Lou Whitney $500
  5. John Nigro $500
  6. OTB Employees $300
  1. Senator Adams
  1. NY Thoroughbred Breeders $1,500
  2. Saratoga Harness $1,500
  3. Oneida Nation $1,500
  4. Monticello Raceway $1,000
  5. Seneca Nation $1,000
  6. Larry Woolf $3,000 Navegante Group– Aqueduct Entertainment
  7. Jeff Gural through Southern Tier Acquisitions $2,500
  8. Waldorf Farms $800 Jerry Bilinski
  9. John Hendrickson $1,000 NYRA board member
  10. NYRA PAC $2,000
  11. NYTHA $500
  12. Thoroughbred Horsemen of Western N Y $500
  13. Yonkers Raceway $1,000
  14. Delaware North $2,000
  1. Senator Addabbo
  1. NYRA $1,000
  2. Delaware North through Finger Lakes $1,000
  3. OTB Employees $500
  1. Senator Klein
  1. Jeff Gural $2,500
  2. Yonkers $10,000 includes $2,500 from Tim Rooney
  3. Struever Fidelco Cappelli LLC $5,000
  1. Senator Stachowski

a.Delaware North $550

b.Western NY Horsemen $1,000

  1. Senator Bonacic

a.Seneca Nation $1,000

b.Trading Cove $500 long time seekers of casino in Catskills

  1. Senator Sampson
  1. Yonkers Raceway $2,000
  2. Levine Builders $2,500
  3. Western NY Horsemen $500
  1. Senator Alessi

a.Western NY Horsemen $500

  1. Senator Libous

a.Jeff Gural $5,000 half through Tioga Downs

b.Western NY Horsemen $250

  1. Senator Nozzolio

a.Western NY Horsemen $1,000

b.B. Delaware North $4,500 through Finger Lakes Foodservice

  1. Senator Volcker

a.Western NY Horsemen $250

  1. Senator Mc Donald

a.Ed and Maureen Lewi $300 – NYRA’s upstate PR people

  1. Senator Schneiderman
  1. Saratoga Harness $2,500
  1. Potential Senate Candidate Peralta
  1. Saratoga Harness $2,000
  1. Contributors to Racing PACs

1.Yonkers

a.Robert Galterio $18,000

2.NYTHA

a.Contessa Racing $250

b.NYRA $3,750

c.Kiaran McLaughlin Racing $500

d.Ralph Smith Inc. $250

e.E. Pat Kelly $1,250

f.Louis Mangieri $250

g.Joseph Acquilino $250

h.Richard Rizzuto $250

i.William K. Warren $250

j.Frank Pizzo $625

k.Alan Garcia $250

l.Scott Solasz $250

m.Namcook Stables $250

n.Equis Endeavors $1,000

o.Brook Ledge Inc. $250

p.R. D. Racing Stable, Inc. $250

q.Prado Racing, Inc. $250

r.Mark Hennig Racing Stable Inc. $250

s.Cappa Partners Corporation $375

3.New York Thoroughbred Racing Industry PAC – NYRA’s PAC

  1. Joe T. Ford $1,000
  2. Richard L. Duchossois $1,000
  3. Joseph Lambert $5,000
  4. Kenneth L. Ramsey $10,000
  5. Dennis Dammerman $5,000
  6. Richard Santulli $10,000
  7. Mrs. Wm. Hamilton $3,000
  8. Bonacio Construction, Inc $5,000
  9. Fasig-Tipton Company, Inc. $5,000
  10. The Beechwood Organization $5,000
  11. Paul Orrefice $2,000
  12. G. Watts Humphrey $2,500
  13. Len Riggio $10,000
  14. Beverly Steinman $2,500
  15. Barry Ostrager $5,000
  16. Sutton and Tarrantiono $1,000
  17. Saratoga Parking $1,000
  18. Tony Beck $10,000
  19. W. P. Dake $5,000
  20. Tracy Farmer $5,000
  21. Ed Swyer $10,000
  22. Earle Mack $5,000
  23. Mike Hess $3,000
  24. Stuart Janney $5,000
  25. Steven Duncker $5,000
  26. Thomas Newkirk $1,000
  27. John Hendrickson $20,000
  28. John Nigro $10,000
  29. John Meriwether $5,000
  30. Charles Wait $1,000
  31. Adirondack Trust $3,500
  32. BST Advisory $5,000
  33. Turbine Service $5,000
  34. Tusco Corporation $5,000
  35. Steam Specialties $5,000
  36. RVR Associates $ 5,000
  37. John Oxley Living Trust $5,000

1

[1] The writer is a member of the board of the New York Racing Association.

[2] A $1,000 contribution from Peebles Corp to Assemblyman Towns

[3] Steve Wynn withdrew from the bidding process in November of 2009.

[4] There is a movement to remove Senator Hiram Monserrate from the Senate based on his conviction of misdemeanor assault on his girlfriend.

[5] Broman is a major breeder and owner of thoroughbred horses in New York and a member of the NYRA Board.

[6] Riggio is a major thoroughbred owner and a member of the NYRA Board. He is the chairman of Barnes and Noble.

[7] See discussion re Andrew Cuomo

[8] See note 5 supra.